CONSULTATION ON THE OUTLINE AND PRINCIPLES FOR THE FIRST STATUTORY CLIMATE CHANGE PLAN 2022-2027 - Cabinet Office Consultation Paper
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CONSULTATION ON THE OUTLINE AND PRINCIPLES FOR THE FIRST STATUTORY CLIMATE CHANGE PLAN 2022-2027 Cabinet Office Consultation Paper July 2021
Contents Contents MINISTER INTRODUCTIONS Emissions Category 5 - Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Chief Minister – Hon Howard Quayle MHK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Emissions Category 6 - Waste Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Minister for Policy and Reform – Hon Ray Harmer MHK. . . . . . . . . . . . . . . . . . . . . . . . 05 Emission Removals PURPOSE A. Our Natural Environment: Carbon Retention, Sequestration And Biodiversity. . . 48 Introduction And Purpose Of This Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 B. Blue Carbon – Ocean Based Climate Solutions. . . . . . . . . . . . . . . . . . . . . . . . . 51 Update On Delivery Of Climate Change Action Plan: Phase One . . . . . . . . . . . . . . . . 08 THE FUTURE/ WORKING TOGETHER A Vision For 2050. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Adaptation And Resilience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 An Exciting, Though Complex Journey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Community Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Establishing The Baseline - Understanding Our Emissions . . . . . . . . . . . . . . . . . . . . . . 14 Funding, Taxation And Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Economic & Environmental Assessment – Prioritising On Evidence . . . . . . . . . . . . . . 18 Setting Interim Target(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Just Transition – Making Changes Fairly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Long Term Pathway To Net Zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Governance – Taking Good Decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 EMISSIONS CATEGORIES APPENDIX Emissions Category 1 – Energy Generation Appendix 1: Relevant Sections Of The Climate Change Bill A. Transforming Our Electricity Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Setting Out Details On The Contents Of The Climate Change Plan . . . . . . . . . . . . . . 66 B. Hydrocarbon Extraction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Appendix 2 – Proposed Contents Of Climate Change Plan . . . . . . . . . . . . . . . . . . . . . 72 Emissions Category 2 - Transport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Appendix 3 - Improving The Quality Of Our Greenhouse Gas Emissions Data . . . . . . 73 Emissions Category 3 - Energy Use In Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appendix 4 – Arup Isle Of Man Future Energy Scenarios Draft Executive Summary And The Future Energy Scenarios Background Reading Document. . . . . . . 79 Emissions Category 4 - Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 03
ISLE OF MAN INTRODUCTIONS INTRODUCTION BY CHIEF MINISTER - INTRODUCTION BY MINISTER FOR POLICY HON HOWARD QUAYLE MHK AND REFORM - HON RAY HARMER MHK Two years on from my recognition of the global climate emergency and call for urgent climate We are at a critical moment in history and may be facing our last chance to act on the action, we have made good progress to ensure that climate change is at the heart of the Isle of climate and ecological emergency and to avert potential disaster. To deliver the change Man Government. A new Climate Change Transformation Team has been established in the that is needed globally and in the Isle of Man, it is imperative that we view climate action Cabinet Office and their work is led by the Climate Change Transformation Board, a political and protecting the environment as central to everything we do. The establishment of the board which I chair. Five Ministers sit on the Board and we are advised by Professor James Climate Change Transformation Team in Cabinet Office is an important acknowledgement Curran MBE in an independent capacity. Since October 2020, the Climate Change of the central role of climate action across the whole of Government. Transformation Team has been working with colleagues across Government to deliver the 60 actions outlined in the Climate Change Action Plan: Phase 1 which was agreed unanimously in We need to move quickly to ensure that we power to deliver the Climate Change Plan Tynwald in January 2020. get on track to reach our target of net zero and help us reach net zero and protect our greenhouse gases as soon as possible and environment effectively. This will require a The Keyll yn Phobble (the People’s Wood) has I am also pleased to be able to make a certainly by 2050. This consultation document new way of thinking across the public service, been planted at Meary Veg and an ambitious commitment that by 2023 an Energy outlines an ambitious programme of work for the private sector and our wider community project to restore our all-important peatland is Performance Certificate will be required when the next five years and sets down our – indeed for every one of us. We are underway. The Citizens’ Forum has been selling or renting out a property, giving home tentative pathway to 2050. committed to working in partnership with meeting since October 2020 and informing the owners an incentive to improve the energy other public bodies, businesses and the wider development and delivery of climate action. efficiency of their homes and giving tenants I am delighted to announce that we have community to each do what is in our gift to more information to choose properties that been accepted as a member of the world- Important research and analysis are underway change for the better. will be cheaper to heat and more leading Under2 Coalition, joining nations and to understand the complexities of comfortable. states around the world to commit to There are some big decisions ahead. We must transitioning our energy, heating and ambitious climate action, and to collaborate decide on our future approach to generating transport systems away from fossil-fuels that The next five years are going to be and share experience in our journey to reach the electricity that powers our Island, how we will help us map out the next three decades particularly challenging as we change our net zero emissions. We are also currently heat our homes and businesses and how we as together we find the best way to reach net course away from fossil fuels and towards the working with the UK on the extension of the travel around the Island and further afield. zero emissions. zero carbon future to which our new Climate Paris Agreement to the Island. This will give The continued pursuit of fossil fuel Change Bill binds us. The Climate Change Bill represents an us a higher level of international accountability exploration has been controversial and important step forward in our progress I am committed to making those changes and clearly signals our intention to work as part presents challenges around the potential towards 2050. Our Government and public and also to guiding and supporting every of a global alliance to keep temperatures revenue that might be generated balanced bodies now have a legal duty to deliver person on the Island to be part of those below 2°C and ideally below 1.5°C. with the legacy of additional emissions that climate action effectively and we have a changes and to benefit from the real would come from extraction. We must confront We are under no illusion about the challenges framework in place that will ensure that we positives that climate action will offer. these issues and develop a new Climate we face and the next five years need to see are making ambitious climate plans and Change Plan that will effectively deliver both This consultation will inform the first statutory not only significant investment in our net zero delivering them. short term emissions reductions and longer- five year Climate Change Plan which we are future but also a social and cultural shift away And I am very pleased to make some now obliged by law to bring to Tynwald by term changes in our culture and values. from our fossil-fuel reliant society. We must important commitments for our future path to April 2022. As such, this plan will be the most reduce our daily impact on the natural world The rewards of making the right decisions net zero. It is my intention that we will ban the significant in setting us on course for net zero. and adopt a way of life increasingly in will be manifold and it is a real opportunity registration of new fossil fuel vehicles in 2030, This consultation is intended to start an Island- harmony with our environment. to shape a fairer society for our community in line with the UK. This will clearly signal our wide conversation in the run up to the election and future generations. Innovation and The requirements set out in the Climate direction of travel and assist consumers in on how (and not if) we will face up to this new ways of thinking will underpin this Change Bill will mean that all Government moving away from fossil fuel vehicles as soon challenge. Now is the time to make the right culture change and I am excited to be departments and public bodies will have to as possible. leading this work within Government. ensure that they are doing everything in their 04 05
PURPOSE INTRODUCTION AND PURPOSE OF THIS DOCUMENT Today, we are at the start of a new chapter in the history of the Isle of Man. We have 28 years to transform our Island from fossil fuel reliance to a net zero carbon community. We have made good progress in recent years, putting in place the governance, legislation and resources for change, but now is the time to set our trajectory and accelerate action DEFA’s Climate Challenge Mitigation Strategy keeping global temperature rise below 2ºC, 2016-2020 provided an initial pathway to 80% and ideally below 1.5ºC, which will give us a reduction in emissions by 2050. A public global network of partners to learn from and consultation by DEFA on a Climate Mitigation share experience with. Strategy 2020-2030 in 2019 drew responses Work is also underway to have the Paris from over 1,000 individuals and organisations. Agreement, the key international agreement on In May 2019, the Chief Minister made a climate change, extended to the Isle of Man. commitment for the Island to reach net zero The Paris Agreement has three key strands – PURPOSE by 2050 and for a Climate Change Bill. A climate change mitigation, adaptation and subsequent motion was supported in Tynwald finance. A significant part of the mitigation to commission an independent report on commitments will be delivered by the Climate achieving net zero by 2050. Prof James Change Bill and the delivery of the current Curran was appointed and, supported by a Climate Action Plan, as well as subsequent cross-government team of officers, public statutory plans. A likely outcome of the consultation events and interviews with key extension is increased external scrutiny of Manx stakeholders, he developed the IMPACT emissions and the effectiveness of efforts to report. The report outlined possible routes to reduce them. net zero by 2050 and the appendices to that The Climate Change Bill completed its report provide detailed background on the passage through Tynwald in April 2021 and is challenges and opportunities to reduce now awaiting Royal Assent. emissions and increase removals in a Manx context. The report informed the Council of When the Bill comes into force, there will be a Ministers’ Climate Action Plan: Phase 1 which requirement for there to be a statutory five was agreed in Tynwald in January 2020 and is year Climate Change Plan in operation at all currently being delivered. times. The current Council of Ministers’ Climate Action Plan will remain in operation Following the approval of the Council of until the new plan is agreed, which the new Ministers’ Climate Action Plan Phase 1, Climate Bill requires to introduced by April development of the Climate Change Bill 2022. The Bill also requires the establishment began. Targeted engagement with key of at least one interim target by that date. stakeholders was held in February 2020, followed by a full public consultation in July The required contents of the Climate Change 2020. The Island will shortly be joining the Plan are set out to some extent in the Climate Under2 Coalition, a group of nations and Change Bill (full details can be found in states working towards the Intergovernmental Appendix 1). The Plan must set out a clear Panel on Climate Change (IPCC) goal of direction of travel on climate change and it must 07
ISLE OF MAN PURPOSE UPDATE ON DELIVERY OF CLIMATE CHANGE ACTION PLAN: PHASE ONE consider a wide range of underpinning and to review and improve the Island’s Work on delivering the First Phase Climate Change Action plan began in earnest in principles, including ensuring a just transition emissions data, which has resulted in a October 2020, when the Climate Change Transformation team were officially appointed (making the transition away from fossil fuels fair significantly better understanding of our within the Cabinet Office. The Team consists of six full time and five part time members, for all, especially the more vulnerable sectors of current position. who are split between policy development and research, and delivery. The Delivery Team our society), promotion of the United Nations focus on the actions already agreed by Tynwald in January 2020 as well as governance This document provides an outline for the Isle Sustainable Development Goals, and protection and programme management, whilst the Research Team focus on the inventory datasets of Man’s first statutory Climate Change Plan of ecosystems and biodiversity. and the research needed to create the overall roadmap to 2050 based on the latest robust (2022-2027) and offers the basis for a scientific evidence, and on the development and delivery of the Climate Change Bill The Climate Change Transformation Board comprehensive public consultation during agreed to present an update on the Climate July and August 2021. A general consultation The past eight months have seen us make real progress on our journey to net zero. Our Change Plan to Tynwald in July 2021 and to exercise will run alongside targeted outreach programme began as soon as the team were in post, meeting up virtually and face to launch a public consultation on the outline and engagement with the Citizens’ Forum and key face with our many different stakeholders and agreeing project charters together. The project principles of the plan. stakeholders. Essential research work to charters form the basis of our programme management and governance framework which inform the final Climate Change Plan will also underpin the transformation programme and enables the projects to commence. Significant work has been undertaken to set continue in parallel to the public consultation. strategies for each main segment of emissions Highlights on delivery to date include: Whilst consultation on the Climate Change Plan will become a statutory requirement once • The progression of the Climate Change Bill through the legislative branches, the Bill has come into operation, the approach to consultation is not specified. The Climate enshrining our net zero goal in law and establishing a clear framework for climate Change Transformation Board approved the following process for consultation on the plan: action planning and accountability for delivery. • The 2021/22 budget allocation of an additional £10 million in funding to help 1. Outline of the plan to go to Tynwald in July 2021. deliver tangible climate action to reduce emissions and increase natural carbon 2. Immediately after consideration in Tynwald, undertake public consultation on sequestration (storage). the plan. • The delivery of the future energy scenarios for the Island to understand how 3. Key areas of research will continue alongside public consultation. we will reach our target of 75% renewable energy by 2035 and ultimately 100% by 2050. The scenarios revolve around the energy trilemma; security of supply, 4. Input from Tynwald debate, public consultation and ongoing research work will renewable generation and low cost to consumers, and are outlined for consultation inform drafting of the full Climate Change Plan in September-October 2021. in this document. 5. Acknowledging that there is a national election on 22 September 2021, • The planting of 85,000 trees at Meary Veg. The new woodland will boost carbon the full Climate Change Plan will be approved by the new Climate Change capture and create a new amenity for Islanders to connect with nature and boost Transformation Board once the new administration is in place. wellbeing. Once established, this will sequester around 100t CO2 per year. 6. Following political approval, a second public consultation on the full Climate • The development of a new, revised Green Living Grant which will support up Change Plan will begin in late 2021. to 1,200 home owners to retrofit their homes, making them more energy efficient and increasing the overall energy ratings whilst also installing low carbon heating 7. Using input from the second public consultation, the Climate Change Plan will be systems. This is predicted to save around 3,000t CO2/year. finalised and proceed to Tynwald for approval by April 2022. • The formation of the Citizens’ Forum, a focus group representative of the Manx The full draft of the new Climate Change Plan will include all the sections required by the Climate public set up to inform research and policy regarding Climate Change issues. The Change Bill (see Appendix 1) and will also comply with international best practice (see Appendix 2). group were instrumental in the formation of the principles for the Green Living Grant. 08 09
ISLE OF MAN PURPOSE • Working with Behavioural Change specialists on insights work (interviews, focus • DOI have purchased and are now operating six hybrid buses around the Island’s groups and secondary research) to inform our Change and Engagement Strategy public transport network. which will ensure everyone in the Isle of Man will recognise the implications of climate • We are locating two Departments in shared office space, whilst operating from home change, fully understand and contribute to the Island’s response, embrace their role and hub locations to reduce travel and property-related emissions and improving in the transition to net zero and are galvanised to take specific concrete actions that productivity and quality of the life for the teams, whilst reducing operating costs deliver emissions reductions. (releasing funding for emission reduction projects). • Liaising with Government estate managers to identify opportunities for renewable • We are planning our attendance at this year’s COP26 in November, which will include electricity and heating installations as and when buildings are undergoing remedial a political delegation. We intend to partner with an organisation in the UK Government’s works or plans are being made for capital projects (for example the replacement of ‘blue zone’ exhibition area to highlight the Island’s commitment and pathway to net zero roofs to incorporate solar photovoltaic panels, also known as solar PV). as well as our UNESCO Biosphere status. • Launching and completing the PIN process for 20MW of on-Island low carbon • We have reviewed and improved the emissions data, working with the UK’s data generation with 41 diverse applications and 6 invitations to interview, which clarified assessment contractor, to improve our understanding of the sources of emissions the need for a strategy around the future of energy generation in the Isle of Man. and removals in the Isle of Man. • Working with UCM and the construction industry on the skills needed to ensure near net • We have introduced a prioritisation methodology so that we principally appraise zero housing, identifying and establishing courses to upskill contractors. potential projects on the basis of their net costs per unit of reduction of CO2 • Commencing work on a renewable heating strategy to identify the roadmap emissions, whilst increasingly taking account of the social and economic implications to achieve the decarbonisation of heating systems which account for a significant within the costs and benefits calculation. proportion of our greenhouse gas emissions on the Island. • Trials are being prepared to provide local hubs across the Island, where • An initial peat restoration project has been agreed, funded and started with the customers can access the full range of government services, as an important first 1,000 acres of restoration. This will transform some of the most degraded areas contribution to establishing 20 minute communities. of peat from a source of emissions back into one of our most important carbon sinks. • Work on a marine carbon strategy to maximise blue carbon (the carbon stored in marine and coastal ecosystems) is underway and builds on our network of 10 Marine Nature Reserves and inshore fisheries management zones. Blue carbon is an area where we believe the Island could become a global leader in innovative marine management. • A working group from across Government is working on developing a specification for commissioning a comprehensive Land Management Plan. This plan will identify key opportunities and risks around land management for carbon sequestration and for emissions reduction and for climate change adaptation and resilience. This work will ensure that increasing our natural carbon capture is carried out in a manner that maximises carbon sequestration and wider ecosystem benefits and doesn’t have unintended consequences that we will regret in future. • We are at the early stages of the creation of a local offsetting scheme whereby residents and businesses can offset their emissions via loca nature-based sequestration schemes, which would be included in our emissions reduction figures. 10 11
ISLE OF MAN PURPOSE A VISION FOR 2050 By 2050 we will have reduced greenhouse gas emissions, and we will be left with minimal Reap the benefits of an economically and environmentally sustainable economy unavoidable emissions (for example, food production). Renewable electricity will power our homes and our transport. We will live in homes that are warm and easy to heat. We will understand the carbon footprint of all We will have embraced the economic the goods and services we use, enabling us to importance of a healthy environment, and we Live in safe and sustainable communities make informed decisions. We will have fully will have an economy that equitably sustains us. embraced the circular economy concept, and Our communities will be better designed for short walk, will be well-connected with cycle- the entire life cycle of goods and services will living and working locally and with good ways and public transport for longer journeys. be well understood and managed to minimise walking, cycling, and public transport associated emissions. And whilst our sea and air connections with infrastructure. We will not need to drive as our neighbours will still be vital to our much, and the cars that we still drive will be community, we will have focussed on creating Be robust and resilient to climate change and other challenges, and feel happier no longer be reliant on fossil fuels. Driverless about our secured future a more global and diverse offering on the and or shared vehicles will have become a Island to replace some of our need to travel, normal part of life. We will be well-adapted and resilient to the challenges around health, well-being, and our whether that is in business, education, arts Our networks of low travel communities, and culture or science and innovation. challenges associated with a changing climate, place in the world. where almost everything we need is within a prepared for increased storminess, more We will have achieved this in a way that has extremes of weather, including very wet and also improved the quality of life for the most very dry periods, and rising sea levels. People Fully embrace innovative technologies in our low-carbon lifestyle vulnerable in our society, promoting warmer, will also be socially and culturally adapted to safer homes, better transport links, and flexible We will have embraced new technologies like their land to increase carbon sequestration. living in a changing climate, with different work accessible to all. vertical farming to reduce imported food and We may travel less, but we will be more maximise our self-sufficiency. Farmers will play connected than ever with the world as shifts in Leave an environmental legacy that we are proud of for our future generations a key part in our emissions-free lifestyle, working and networking made in the providing low-carbon local food and managing COVID-19 pandemic have become the norm. We will have invested in economic passing the climate burden of our consumption development that promoted and supported onto other countries. In our areas of strength Enjoy our flourishing biodiversity and healthier ecosystems the transition to net zero and protected and we will have led and excelled. restored our ecosystems. The promise of our UNESCO Biosphere We will have changed our landscape and sequestration, natural flood risk management, We will have kept pace with the global designation will have been fully realised and we will seascape to enhance our natural carbon erosion management, and water quality. Our transition, playing our part in full and avoiding be living a comfortable life in harmony with nature. storage. Our towns and villages will be greener sea area (over 87% of Manx territory) will be and there will be more trees, allotments, cycle managed for blue carbon, healthy ecosystems, paths, and walkways connecting settlements. food production, and thriving marine life. There will be more woodland, and our Climate action and nurturing our natural wetlands, peat and other habitats will be environment will be central to everything we restored and have a higher capacity for carbon do, and as a result, we will have clear air and sequestration. Biodiversity will be thriving, and seas, even more, beautiful and inspiring we will benefit from healthier ecosystems that surroundings, and increased access to nature can offer us services such as carbon for everyone in our community. 12 13
ISLE OF MAN PURPOSE AN EXCITING, THOUGH COMPLEX JOURNEY Climate action seems so simple – reduce the energy we use, generate all our electricity from renewable sources, move away from fossil fuels in our homes and cars and businesses. Consultation questions In reality, our lives, our day-to-day routines, and services (known as ecosystem services) such as 1. Do you feel this is a vision the Isle of Man can live up to? the infrastructure that support them are natural flood risk management, erosion reduction F Yes embedded in fossil fuels and to fully transition to and water quality improvement. These assets a low carbon society we have to re-think all take a long time to mature, so we need to make F No aspects of that infrastructure and the way we use sure we have planned them properly now. F Not sure it. We also need to consider the complex In the Climate Change Bill we have committed to consequences of changing one aspect of that 2. Please provide your comments about the Vision reaching net zero through domestic effort, which infrastructure on everything else. means that we are not going to buy carbon We also need to think very carefully about what offsets in other countries to allow ourselves to “net zero” means. To be net zero by 2050 we will continue to produce more emissions. We have ideally have to be able to balance any remaining made a commitment to balance our own books. greenhouse gas emissions with equivalent It should be noted that this does not mean that removal of carbon dioxide from the atmosphere we will not be supporting projects that will by habitats like woodlands, peat bogs and increase sequestration or reduce emissions in seagrass beds. If that isn’t possible, we will also other parts of the world. One of the two themes have to find artificial ways of capturing and of our international development partnership storing carbon dioxide. The more emissions we funding stream for 2021-23 is climate change are unable to eradicate, the more expensive it and all international development funding must will be to reach net zero. For natural carbon align with UN Sustainable Development Goals. storage we need to make sure that we have Supporting climate action in developing countries healthy, diverse ecosystems that can store the is also a key theme of the Paris Agreement. most carbon and also provide us with many other Important considerations in developing the 5 year Climate Change Plan The key components of any five year plan are outlined in the Climate Change Bill (see Appendix 1 for full details). Some elements are required (those that the Bill stipulates the Plan must contain). Others are suggested but not obligatory (those that the Plan may contain). A recent publication on developing a gold standard net zero climate action plan provides a good checklist of contents and it is also proposed that we follow those recommendations (see Appendix 2 for full details). 14 15
ISLE OF MAN PURPOSE ESTABLISHING THE BASELINE UNDERSTANDING OUR EMISSIONS The Isle of Man’s Greenhouse Gas Inventory Recording and reporting of greenhouse gas emissions is a key part of understanding and Energy Supply responding to climate change. The Isle of Man’s greenhouse gas emissions are estimated as part of the UK’s reporting to the United Nations Framework Convention on Climate Change Energy Supply (electricity) makes up the largest proportion of the Island’s emissions at 34% (UNFCCC) each year. This ‘inventory’ of emissions and removals is estimated in line with the of net emissions (237kT CO2e). The majority of these emissions come from the Combined Intergovernmental Panel on Climate Change (IPCC) guidance. Crucially, this involves accounting Cycle Gas Turbine (CCGT) at Pulrose, with smaller amounts produced by the Energy from for emissions on a ‘production’ or ‘territorial’ basis – that is, emissions are accounted for in the Waste (EfW) plant, and diesel generators. Due to the methodology outlined above, any geographical area that they are emitted. For example, the emissions involved in the production emissions from electricity which is produced on-Island and exported to the UK is included in of a car in UK would be accounted for in the UK. If that vehicle was sold and driven in the Isle of the Island’s inventory. Conversely, electricity imported from the UK is excluded from the Man, the emissions associated with the fuel that was being burned would be accounted for in Island’s inventory. Data for this section is sourced from Manx Utilities fuel usage volumes, the Isle of Man. This approach is different from the ‘consumption’ or ‘carbon footprint’ basis, meaning that it is highly reliable. where emissions are estimated based on end-use. Transport In the Climate Change Bill it will become a legal requirement to report to Tynwald on emissions Transport makes up 24% of net emissions (164kT CO2e). The largest components of on a five yearly basis and to ensure that our emissions reporting aligns with international transport emissions are petrol and diesel usage for cars, making up just under 60% of the reporting standards. total. Other large contributors are shipping, aircraft, and HGVs/buses. For travel to/from the Work is ongoing to improve the quality of our emissions data to provide the best possible UK, half the round-trip aircraft/shipping emissions are allocated to the Isle of Man, and half to baseline from which to measure our progress and further details on recent changes to the Isle of the UK. For international travel (e.g. to the Republic of Ireland) these are excluded from the Man greenhouse gas inventory can be found in Appendix 3. inventory and reported separately. These calculations follow the standard IPCC guidance. Data for transport emissions is sourced from petrol/diesel volume data for road vehicles. Aviation data is sourced from detailed Civil Aviation Authority data plus the DUKES database. IOM 2019 GHG Inventory (excl LULUCF) Shipping data is sourced from high-resolution tracking systems for vessel movements. These sources are considered good estimates, although further refinements to the split of car vs HGV usage could be made with more detailed fleet usage data. Residential Energy Supply - 33% Residential emissions make up 21% of net emissions (146kT CO2e), the majority of which Transport - 23% relates to home heating using oil and gas. These figures have been refined based on more up-to-date volume data for the 2019 inventory, and this revision has been applied to previous Residential - 20% years, in line with emissions data protocols. The overall figures are fairly accurate, however Agriculture - 14% further work is required to better allocate gas usage between residential and business sectors. Business - 7% Agriculture Waste Management - 3% Agricultural emissions make up 15% of net emissions (105kT CO2e). The largest category of emissions is methane from animal digestion and waste, followed by Figure 1: The Isle of Man greenhouse gas inventory for 2019, indicating the percentage emissions from land use. This data is sourced from the Isle of Man Agricultural Census of emissions that each major emissions and is considered fairly accurate, though there is scope to refine further with the category accounts for (Aether verified data). availability of more detailed information on specific Manx farming practices. Land Use, Land Use Change, and Forestry (LULUCF) is excluded from the chart as it is a net remover of greenhouse gases. 16 17
ISLE OF MAN IOM GHG Inventory 1990 – 2019 900 800 700 kilotonnes CO2e 600 500 400 300 200 Business 100 Business emissions make up 8% of net emissions (53kT CO2e). Most of these emissions 0 relate to heating commercial buildings with smaller levels of emission from refrigeration and other chemical processes. For heating, the source data is fairly accurate but further -100 work is required to split out commercial gas usage from residential gas usage. 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 90 91 92 93 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 19 19 19 19 Emissions from refrigeration and chemical processes are based on UK levels scaled to the Isle of Man, so there is scope to improve this data through a better understanding Transport Energy Supply Business Residential Agriculture Waste Management of business processes. Industrial processes Land use, land use change and forestry Net Figure 2: The Isle of Man greenhouse gas (GHG) inventory 1990 to 2019 showing net emissions from all sectors in the Isle of Man Waste Management Waste Management makes up almost 3% of net emissions (23kT CO2e). The Energy (please note that LULUCF is negative (below the line) as this category is a net remover of carbon). from Waste (EfW) plant is included in Energy Supply, leaving emissions from landfill and Figure 3 shows the UK inventory as a comparison. The UK’s emissions have steadily fallen since sewage. 1990 driven mainly by reductions in emissions from energy supply. Industrial Processes UK GHG Inventory 1990 – 2019 This is a small category that does not appear in the above pie chart as it makes up less 900,000 than 1% of emissions. This relates solely to nitrous oxide emissions from food 800,000 consumption. 700,000 Land Use, Land Use Change, and Forestry kilotonnes CO2e 600,000 This category is a net remover of carbon dioxide, therefore it does not appear in the pie 500,000 chart. The total removals equate to 31kT CO2e which is equivalent to about 3% of net emissions. Data on land use is collated from a range of sources and work is underway to 400,000 improve this data. 300,000 200,000 100,000 0 -100,000 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 90 91 92 93 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 19 19 19 19 Transport Energy Supply Business Residential Agriculture Waste Management Industrial processes Public Land use, land use change and forestry Figure 3: The UK greenhouse gas inventory for all sectors 1990-2019, for comparison. The UK has made significant progress in comparison to our situation, much of which has been through their long term initiatives to decarbonise their electricity generation. 18 19
ISLE OF MAN PURPOSE ECONOMIC & ENVIRONMENTAL ASSESSMENT JUST TRANSITION PRIORITISING ON EVIDENCE MAKING CHANGES FAIRLY The climate action required to meet net zero will require big changes to our way of life, and There are a wide range of requirements in the Climate Change Bill which will ensure that the we need to make sure that the decisions we take are based on the best possible Climate Change Plan takes full account of the impacts of climate action on the most vulnerable information, giving us a full understanding of the costs and implication. In order to properly as well as those with limited financial resources to take individual actions in our society. assess and compare different interventions, a structured approach is required. This should If we can act effectively on climate change, our actions will benefit our own community and the ideally take the form of an economic and environmental appraisal of different policy options global community as well. Ensuring that we choose climate actions with the widest benefits to in order to determine which provide the greatest benefit to society alongside the lowest the community will also ensure that people’s experience of climate action can be positive rather costs. Conducting such an appraisal requires quantification of the monetary benefits (and than punitive. costs) that society as a whole will see as a result of reducing (or increasing) carbon emissions. This can then be set alongside the financial costs (or savings) incurred by the In everything we do, we must fully understand the wider implications for individuals and society individuals or organisations funding these interventions. It is important to ensure the and if the full economic and environmental appraisal approach is implemented effectively, then ecosystem services and the value of biodiversity are a key part of this approach (for the wide range of potential impacts on people will be fully considered and mitigated. example, through natural capital accounting). Wider socio-economic considerations such as This does not mean that there will not be difficult decisions, or actions that will impact directly security of electricity supply and of the benefits of self-sufficiency can also be included. on businesses and individuals, but by giving plenty of notice for new measures and by always considering those least equipped to make big changes, we will protect and support those who Such an approach is essential when term project, such as everyone using public are most vulnerable. comparing different interventions which by transport rather than cars for one day a week. their nature, will take place over dramatically This latter intervention would have immediate different timeframes. This is where benefits and immediate costs, but if it only ‘discounting’ is required, in order to account ran for a year, would have no ongoing impact. Consultation questions for the fact that benefits (and costs) that are The woodland project would have far greater 3. How much do you feel you understand about Just Transition - realised far in the future are less valuable to benefit over its lifetime, but that lifetime is far making changes fairly? society today than benefits (and costs) that longer. Another example of this is the case of are realised now. For example, a woodland- home insulation which not only contributes to F I am new to the topic planting project may take many years to grow reducing emissions but can also save F I have a basic understanding (e.g. previous reading for general interest) and reach its full potential to sequester households significant amounts of money and F I have a strong understanding (e.g. experience in a professional capacity; carbon. There may be some costs now, and improve their living standards and health. This higher level or undergraduate study) further ongoing costs to maintain the area is particularly complex and will likely F I have an expert understanding (e.g. postgraduate academic qualification in the woodland. The scheme would continue to require additional expert advice to ensure field, expert role in a business in this area) provide benefits decades or even hundreds of that our decisions are made with the best years into the future. Without having a possible information. 4. Do you think the changes required to reach net zero will disproportionately consistent way to treat these distant benefits It is proposed that as we develop our first impact the most vulnerable in society? and costs, it would be very difficult to statutory Climate Change Plan this systematic F Yes compare this woodland project to a short- approach is adopted. F No F Not sure 20 21
ISLE OF MAN PURPOSE GOVERNANCE TAKING GOOD DECISIONS In the past two years there has been a lot of progress to develop climate action as a key workstream for the Isle of Man Government. The work is led by the Climate Change If you answered ‘Yes’ – do you think any mitigations are required? Transformation Board which is chaired by the Chief Minister and includes five ministers, Tick all that apply giving the Board the highest level of political support and influence. Climate change has F No mitigations required moved from DEFA, where there was a risk that it was seen as a purely environmental concern, to Cabinet Office where it can become part of core Government policy making F Yes – increased funding / grants / subsidies for vulnerable groups and leadership. F Yes – increased education / outreach for vulnerable groups F Yes – something else (please describe below) When the Climate Change Bill is enacted, frameworks to help develop and deliver there will be the need to embed this level of climate policy. Please add your comments climate leadership across Government and It is hoped that the Paris Agreement will be also throughout the public bodies to which extended to the Isle of Man before the the Bill applies. Climate Change Plan is completed and this Guidance will be required to help all public will give us another clear set of principles and bodies to deliver on climate change and requirements to inform climate action. Taking support will be needed for them to ensure that an active role in our participation in climate change is given the priority required. international networks and agreements will help Government and whole community The new Climate Change Plan will need clear make the best-informed decisions, learn from actions around ensuring that climate those further along the path to net zero and mitigation and adaptation is effectively share our experience. implemented across Government and public bodies. Delivery of the provisions in the Active engagement in other important Climate Change Bill will need to be a priority, knowledge-sharing networks, for example the including the development of extensive specialist sub-groups of the British Irish secondary legislation, some of which is Council on climate change, energy and other required as soon as possible. environmental topics, and via our UNESCO Biosphere networks will also be important. Our imminent membership of the Under2 Coalition will provide a networking The Isle of Man’s greenhouse gas emissions opportunity to assist all sections of are calculated as part of the UK’s reporting to Government and the wider community in the UNFCCC each year. This ‘inventory’ of finding the right approaches to tackle climate emissions and removals is estimated in line change. It will also provide us with external with IPCC guidance. 22 23
EMISSIONS EMISSIONS CATEGORY 1 ENERGY GENERATION A. TRANSFORMING OUR ELECTRICITY GENERATION Headline no-regret action: Enable our urgent low carbon transition by undertaking a feasibility study for a new interconnector (or interconnectors) immediately, whilst enabling local investment in economic and reliable renewable generation. The interconnectors will ensure the electricity grid can better cope with future renewable generation. In the Climate Change Plan, the Energy Strategy and an economically viable route to 75% electricity from renewable sources by 2035 and net zero emissions by 2050 will be enabled by this approach. Current Energy Supply Energy supply is the largest emissions category for the Isle of Man and accounts for EMISSIONS 33% of total emissions. Currently around 84% of the Island’s electricity generated by the Manx Utilities is from imported fossil fuels. Natural gas is imported via a spur in the gas interconnector connecting Scotland and Ireland and diesel is imported at Peel and Douglas. It should be noted that whilst the diesel generators now rarely run they provide emergency back-up capability. The interconnector cable is typically used to import around 9% of our electricity from the UK. Excluding imported fossil fuel-powered generation, our only on-Island energy generation comes from the Hydro Plant in the Sulby Glen and the Energy from Waste Plant. KIRKCUDBRIGHT 1 MW- Sulby Hydro EC TO R NORTHERN NN ISLE ENGLAND IRELAND O OF RC TE IN MAN S Brides Hill GA IS GA PEEL DOUGLAS RD REPUBLIC BO ELE CTR OF ICA L IN UK IO BISPHAM IRELAND TER M CO BLACKPOOL IRISH SEA NN ECTO Watch Tower R LI NK GORMANSTON Ga Ramsaa sP ip Primrose Hill Skyhill Maughold’s Head eli ne Imported Natural Gas St Patrick’s Isle 80 MW 40 MW- Peel Diesel Station 50 MW- Pulrose Diesel Station Trynwald Inte rco n nec tor 60 MW St Catherine’s Well Mare’s Head Imported 5 MW- EFW Plant Diesel 83 MW- Pulrose CCGT Station Figure 4: Our current energy supply 25
ISLE OF MAN EMISSIONS Future Energy Scenarios Dispatchable Generation A study has been undertaken by the international engineering and consultancy services Dispatchable generation is flexible plant which can be started and shut down on demand and firm Ove Arup to propose possible scenarios that achieve the target of 75% electricity power output can be varied quickly. This ensures grid frequency remains stable and secure. from renewable sources by 2035 and net zero emissions by 2050. The study also considered the most effective way to achieve the emission reduction targets whilst Baseload Generation maintaining a secure and affordable energy supply. The consultants began by Baseload generation can be less flexible, but is essential to ensure the transmission projecting future electricity demand (see Figure 5) to inform the work. network operates within its limits (thus avoiding black-outs) and meets the minimum required electricity demand. Projected peak demand (including losses (2020F-2050F)) Intermittent Renewables Intermittent renewables are sources of generation powered by natural resources i.e. wind, 140 tide and solar. The power output (or availability) of these generation units is highly 120 dependent on prevailing weather conditions. The lack of ability to vary power output from intermittent renewables means voltage and frequency (along with many other stabilising Peak Demand (MW) 100 factors) cannot be controlled on their own and baseload generation is still required. Over short time scales, storage (e.g. batteries) can temporarily manage some aspects such as the Consumer Transformation 80 frequency swings by absorbing and releasing power. On a windy, sunny day demand System Transformation capacity could be met from renewables, with the interconnector providing the baseload 60 Leading the Way stability. However it is possible that there would be periods when renewables are producing 40 more renewable power than required on the Island so excess power is either exported or stored (for example batteries and/or through the production of hydrogen). 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2021 2022 2023 2020 Source: Arup Analysis Modelling Outputs The scenarios considered in the Ove Arup report use intermittent renewables, dispatchable, and Figure 1: Projected peak demand for electricity up to 2050, modelled by Ove Arup for three different scenarios with different levels of transition to electricity. baseload generation. The scenarios all take account of the need to stabilise generated electricity to ensure fluctuations do not result in grid instability. They also ensure that the break-down of one component would not result in a loss of electrical supply to customers (a black-out). Electricity demand is expected to increase with greater future use of electricity in heating (e.g. heat pumps) and transport (e.g. electric vehicles). Peak demand is estimated to In all analysis, interconnectors are the most cost-effective source to meet baseload increase from around 80MW today up to around 130MW by 2050. Further details on the demand. Interconnectors allows us to import renewable electricity from neighbouring energy scenarios can be found in the Ove Arup report (Appendix 4 – Arup Executive jurisdictions and can also be designed to be bi-directional which could allow them to Summary and accompanying background reading). These scenarios have been costed be used for export when local renewables are excess to demand. On-Island generation and will allow the future development of an electrical energy strategy that is secure and is sometimes more cost-effective than imported electricity at times of peak demand. progressive for the Isle of Man. The electrical energy strategy will comprise of a mixture Biofuel can also be used to provide renewable dispatchable generation. The use of of intermittent renewables, dispatchable, and baseload generation. biofuel assists in increasing resilience of the electricity system for short periods of time and providing local power generation at peak times when electricity may be expensive or impractical to import. 26 27
ISLE OF MAN EMISSIONS Impact on emissions influenced by these new provisions. Commercial exports could be stopped and significantly Each of the scenarios will allow the carbon intensity of electricity generation to reach reduce the Island’s emissions (by approximately 60,000 tonnes). However, the removal of zero emissions before 2050. this income stream could increase local electricity prices to the consumer by up to 6%. In the Channel Islands interconnectors are used to import low carbon (nuclear and Existing assets renewables) energy from France which significantly reduces their per capita greenhouse The existing Manx Utilities CCGT fossil fuel generating assets will reach the end of their gas emissions compared to the Isle of Man. Similarly, should the Island make an early designed life by 2035. An initial carbon reduction can be achieved be moving the role switch to import a significant proportion of our electricity via our existing 60MW of this equipment from baseload to dispatchable generation plant. Much of the interconnector, rather than continue to generate from fossil fuels, then the Isle of Man equipment (gas turbines) will be supportable well beyond 2035 and could continue to would reduce declared emissions immediately. These emissions would be accounted be used as cost effective biofuel-enabled dispatchable generation plant. for in the country of production, however, only if the imported power is from new renewable or low carbon sources would global emissions be reduced. The existing gas turbines also have the capability to support the current plans for the introduction of hydrogen into the UK gas pipeline. The gas turbine suppliers have plans The changes introduced by the Climate Change Bill mean that both Manx Utilities and/ to keep pace with the future introduction of hydrogen with engineering modifications, or privately owned companies could invest in new generating assets and however, this technology is not yet confirmed or available. interconnectors, and they would have to make power purchase decisions based on emissions reduction plans and statutory target rather than purely from the economic The diesel generators are already past their end-of-design-life, but will be maintained perspective required under the Electricity Act. to ensure resilience until at least 2025. Should the new assets not be owned and operated by Manx Utilities then the As the diesel generators are decommissioned, it has been identified that additional future role of Manx Utilities could change to become that of Network Operator dispatchable biofuel capable plant and storage capacity will be required to maintain secure and Supplier, providing grid stability, balancing services and supplying electricity supplies in the transition period, as the electrification of heating and transport expands. to consumers. Emissions targets In terms of the Island’s formal greenhouse gas inventory which must be reported annually to the UK, greenhouse gas emissions are counted where they are generated rather than consumed, in line with IPCC guidelines. Currently, Section 2(1) of the It is proposed that in the Climate Change Plan 2022-2027 we will commit to: Electricity Act 1996 states: ‘It is the duty of the Authority to develop and maintain an efficient and economical system of electricity supply for the Island.’ Manx Utilities 1. Finalising an Energy Strategy to achieve 75% electricity from renewable sources exports electricity to the United Kingdom when it is costeffective to do so as part of its by 2035 and net zero emissions by 2050, acknowledging the energy trilemma of economic statutory duty as any additional contributions (extra income less extra costs) balancing the environment, cost and security of supply. from exports offset fixed costs that otherwise have to be borne from local income. In 2. Setting an achievable and equitable target to decrease emissions from energy recent years electricity exports have contributed between £3 million and £4 million per generation by 2027. year to Manx Utilities’ fixed costs, equivalent to around 6% of local electricity sales 3. Commencing feasibility studies and other preparation for at least one additional income. In previous years lower levels of electricity exports have principally been used interconnector which would allow additional import and export of electricity to ensure higher levels of power station efficiency and reliability. (required for all possible energy scenarios identified to date). However, under the new provisions of the Climate Change Bill, Manx Utilities will also be 4. Commence feasibility studies on biofuel-capable dispatchable plant, to replace required to act to reduce emissions, so their position on exporting electricity will be the aging diesel generators that can be used to maintain security and stability of the Isle of Man electrical system. 28 29
ISLE OF MAN EMISSIONS Summary of current situation 5. Reducing commercial export of fossil fuel generated electricity to the UK, to Electricity is probably the most important sector to decarbonise as emissions reduction from other achieve an optimised decrease in emissions. sectors (especially heating and transport) is dependent on this sector. As the uptake for electric 6. Conduct detailed feasibility studies on the first phase of a new, renewable heating and electric vehicles increases, the electricity sector will have to grow to meet demand. source of electricity generation baseload. The majority of the Isle of Man’s electricity is sourced from fossil fuels, with small amounts of 7. Identifying sustainable local provision of biofuel for electricity generation and green electricity generated from hydro-electric and imported via the interconnector from the home heating, which will also maximise sequestration potential and benefit UK. The interconnector also provides a route to export electricity to the UK. Current legislation ecosystems and biodiversity (exploring relative benefits of wood, fuel crops, the requires Manx Utilities to optimise its operations to provide the lowest cost solution for its use of waste products, appropriate combinations of fuels and other sources). customers. In recent years UK electricity demand and wholesale electricity prices have risen, 8. Identifying verified sustainable sources of imported biofuel to inform future increasing the amounts of electricity exported from the Isle of Man to the UK. In future, the decisions on import versus local production. Climate Change Bill will add in a duty to deliver emissions reductions so future export of 9. Working with Manx Utilities on the roll out of smart metering to assist in the electricity will become incompatible with our climate change commitments. management of peak demand, helping consumers to be aware of and manage The Future Energy Scenarios Strategy has now been completed and has provided several their power usage, enabling the optimisation of the distribution network with possible routes to allow the total decarbonisation of electricity by 2050. These scenarios all the increased electricity demand from the roll out of electrification (e.g. for EVs require interconnection to the UK to provide stability, with varying levels of renewable biomass and heat pumps) and monitor reductions in electricity demand elsewhere. to reduce costs across peak demands and varying levels of intermittent renewables. Scenarios 10. Helping consumers to be aware of their carbon footprint including their deploying an increased level of intermittent renewables have both a higher construction cost contribution from power usage and how they can change their behaviour to and a potential higher cost to the bill payer. The scenario with the lowest cost to consumer reduce this footprint. utilises interconnectors, renewable biomass and low levels of small-scale wind and solar. 11. Continuing to explore and encourage additional renewable electricity generation at all scales, where feasible. 12. Exploring a scenario where the Manx Utilities manage our national grid and Consultation questions: supply consumers, whilst the public and private sector work with them to 5. How much do you feel you understand about Emissions generate our future electricity. Category 1a - Energy Generation? 13. Enabling individual residents and businesses to invest in their own generation (such as solar PV), as part of addressing their own consumption needs where it is F I am new to the topic in-line with the principles of just transition. F I have a basic understanding (e.g. previous reading for general interest) F I have a strong understanding (e.g. experience in a professional capacity; higher level or undergraduate study) F I have an expert understanding (e.g. postgraduate academic qualification in the field, expert role in a business in this area) 30 31
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